1 week ago
GIFT Nifty Signals Positive Start as Key Levels Guide Trade
GIFT Nifty suggests that Indian markets may open slightly higher on Monday.
Asian markets were mostly weak or flat, while US markets ended Friday higher.
Investors are waiting for details about possible US sanctions on Iran.
Oil prices fell a little before that announcement.
High bond yields and geopolitical concerns could make markets move unpredictably.
Analysts said Nifty could rise if it stays above important support levels.
Bank Nifty is also moving in a narrow range but still has a mildly positive trend.
Traders are being advised to avoid chasing prices and consider buying strong companies during meaningful declines.
GIFT Nifty rose 74 points, or 0.30%, to 24,360, indicating a potentially positive Indian market opening.
Asian markets were mostly subdued, while US stocks closed higher on Friday despite weekly declines.
Analysts highlighted geopolitical uncertainty, elevated crude prices and US bond yields as risks to near-term market sentiment.
Nifty support was identified near 24,100-24,150, with resistance around 24,400 and possible upside toward 24,500-24,700.
Bank Nifty remained range-bound with a bullish bias, facing resistance near 58,000-58,300 and support around 57,100-57,300.
- Who
- Indian equity investors, foreign portfolio investors, domestic institutional investors and market analysts.
- What
- Analysts provided outlooks and key trading levels for the Nifty 50, Sensex and Bank Nifty.
- Where
- Indian markets, with global signals from Asia, the United States and commodity markets.
- When
- The outlook was published for Monday trading, following Friday's market activity.
- Why
- Market direction is being influenced by geopolitical uncertainty, possible US sanctions on Iran, crude oil prices, bond yields and investor flows.
Cautious outlook
Constructive outlook
Near-term market direction
Cautious outlook
The short-term outlook remains weak, and the Sensex is below its 200-day EMA, keeping the broader trend cautious.
Constructive outlook
Nifty's weekly candle had a long lower shadow and a bullish-hammer-type formation, while its underlying trend was described as positive.
Nifty trading levels
Cautious outlook
A fall below 24,150 on Nifty or 76,900 on the Sensex could increase selling pressure and lead to retests of 24,000 and 76,400, respectively.
Constructive outlook
Holding above the 50-day moving average could support a pullback toward 24,400, with a breakout potentially opening the way to 24,500-24,700.
Bank Nifty strategy
Cautious outlook
Small-bodied candles, wicks and a flat ADX indicate indecision and a lack of a clear directional trend.
Constructive outlook
Bank Nifty remains above its 21-, 55- and 100-day EMAs, supporting a bullish bias and a buy-on-dips approach while the 57,100-57,200 zone holds.
Key facts
- GIFT Nifty
- Up 74 points, or 0.30%, at 24,360.
- Foreign investor flows
- Foreign portfolio investors sold Indian equities worth Rs 542.71 crore on Friday but bought Rs 23,544 crore during August so far.
- Domestic investor flows
- Domestic institutional investors bought Indian equities worth Rs 2,124.14 crore on Friday.
- Nifty levels
- Support was cited near 24,100-24,150; resistance was identified around 24,400.
- Sensex levels
- Immediate support was placed at 77,000-77,380, with resistance at 77,720-78,000.
- Bank Nifty levels
- Support was cited around 57,100-57,300, while resistance was placed near 58,000-58,300.
- India VIX
- India VIX stood at 11.20, indicating historically low expected volatility.
Quotes
Amol Athawale
Vice President of Technical Research at Kotak Securities
“Going ahead, the immediate resistance for Bank Nifty is placed in the 58,200-58,300 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 58,700, followed by 59,000 in the short term.”
businesstoday.in
“A successful breakout above 24,400/78,000 could push the market towards the 24,500-24,700/78,300-78,900 range. On the flip side, if the market falls below 24,150/76,900, sentiment could turn negative.”
businesstoday.in
Sources
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